Parliament committee passes SEZ township amendment in a day
The bill, as amended, was then passed by the full committee with 55 votes in favour and nine against.
The whole parliamentary committee on Tuesday passed the amendment to the Special Economic Zone (SEZ) Act, introducing provisions for sustainable township development and high-rise housing projects.
The bill, submitted by Baarah MP and PNC Parliamentary Group Deputy Leader Ibrahim Shujau on behalf of the government on 20 October, was expedited and passed within a day.
According to the government, the purpose of the amendment is to establish the legal framework for designating SEZs as “sustainable townships” and to set the terms and conditions governing such zones.
The committee, which has a ruling PNC supermajority, passed the bill after adopting minor amendments proposed by the PNC and rejecting all motions submitted by the opposition Maldivian Democratic Party (MDP).
Galolhu South MP Meekail Ahmed Naseem proposed two motions — one to defer the bill’s deadline to February and another to invite relevant institutions, including three ministries and the Maldives Association of Tourism Industry (MATI), to further discuss the bill.
The motions were rejected by votes of 53–9 and 54–9, respectively.
Hoarafushi MP Ali Moosa proposed an amendment allowing villas or rooms in a resort or integrated tourism development within an SEZ township to be leased long-term at a rate of 4% of the total value. The motion was passed with 55 votes in favour and none against.
The bill, as amended, was then passed by the full committee with 55 votes in favour and nine against.
Under the new amendment, a “sustainable township” is defined as a large-scale real estate or integrated tourism development offering residential, tourism, and public services within a specific SEZ, managed under a single framework.
The bill requires that such developments include:
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A minimum investment of USD 500 million.
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A mix of luxury tourism services and residential facilities.
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An international-standard hospitality training centre and health service centre.
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Self-sufficient energy and waste management infrastructure, with at least 60% renewable energy usage.
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Food production and agricultural facilities aimed at reducing imports.
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Residential amenities such as housing, schools, healthcare, and recreational services supported by sustainable infrastructure.
The amendment provides several incentives to developers and investors in township zones, including:
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Reduced property transaction taxes: 1% on the first sale, 2% on the second, and 4% on subsequent sales.
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Income tax concessions: 5% for the first 10 years, 10% for the next 10 years, and standard rates thereafter.
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Exemption from import duties on capital goods used for development within the zone.
The bill will now proceed to the next stage for final approval by Parliament.
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